Penny stocks are some of the highest-risk assets in the stock market today. But with that risk comes plenty of rewards and big rewards at that. In a given day, cheap stocks can explode hundreds of percentage points resulting in massive windfalls for traders. But if you’re new to these low-priced stocks, you might not know what to look for at first. In this case, we’re talking about stocks under $5.
By standard definition, this is the upper threshold for the penny stock range, but it can come with a set of riders depending on the trading platform you’re using. For example, some mobile platforms, including Webull, restrict access to OTC penny stocks, only allowing trading of Nasdaq and NYSE-listed names.
Today we’ll look at a few of the cheapest stocks on Webull that social media users on discussion boards like Reddit are talking about today.
Webull Penny Stocks To Buy Under $1
- Sundial Growers Inc. (NASDAQ:SNDL)
- Exicure Inc. (NASDAQ:XCUR)
- Gran Tierra Energy Inc. (NYSE:GTE)
- Ebang International Holding (NASDAQ:EBON)
- Athersys Inc. (NASDAQ:ATHX)
Penny Stocks To Buy Under $1: Sundial Growers Inc. (NASDAQ:SNDL)
One of the most popular penny stocks under $1 is Sundial Growers. Despite the billions of shares outstanding and the beaten-down sector, the stock continues captivating retail traders. After reaching new 52-week lows last week, SNDL stock has steadily made a rebound back toward the 50 cent level.
The most significant point of interest for the market right now is the company’s pending acquisition. Last year Sundial announced a purchase plan for Alcanna Inc. (OTC:LQSIF). The company would deliver some $15 million or more in added EBITDA, according to Sundial, on an annual run rate. The deal also includes a liquor business with existing revenue. Alcanna also has numerous industry investments, including a roughly 63% equity interest in Nova Cannabis Inc.
What Are SNDL Stock Traders Looking At?
As the details of the deal continue emerging, the market awaits a formal green light from both companies, SNDL stock continues actively trading. One of the underlying points of contention remains the price. Companies listed on major exchanges to stay below $1 pose a risk of delisting. It has been roughly six months since SNDL stock reached highs of $1 or more.
2. Exicure Inc. (NASDAQ:XCUR)
An even lower-priced penny stock, Exicure trades below $0.20 right now. The company specializes in gene regulatory drugs using its “spherical nucleic acid” or SNA technology. An internal probe of the company recently brought some skepticism to XCUR stock. This came in line with the famed Microsoft founder Bill Gates slashing his stake in XCUR late last year.
The internal probe resulted in a new strategy being outlined, including cost-cutting measures and discontinuing the development of specific treatment candidates & trials. It was found that Grant Corbett, Ph.D., the company’s former Group Lead of Neuroscience, made numerous improprieties related to Exicure’s XCUR-FXN program.
What Are XCUR Stock Traders Looking At?
Despite the massive corporate pivot, XCUR stock is on watch lists thanks to specific market metrics. In particular, the beaten-down chart, low price, and potential for any “short squeeze” to trigger. While this may be the trend, a look at short data from numerous sources, including Fintel and TD Ameritrade, shows the current short float at less than 3. That isn’t a relatively high percentage based on most accounts. Nevertheless, shares of XCUR stock have jumped early in the week.
3. Gran Tierra Energy Inc. (NYSE:GTE)
Energy stocks are heating up this year as countless names reach new 52-week highs. As the broader energy ETFs including the XLE, remain near record levels, some traders watch cheap stocks for sympathy. Gran Tierra is one of them, and despite being under $1, GTE stock is up more than 100% over the last six months.
Last month, the oil and gas company revealed its 2022 guidance. Production expectations came in between 30,500 and 32,500 BOPD. This was nearly 40% higher than that of 2020. The company also anticipates free cash flow between $40 and $60 million with full repayment of its credit facility.
What Are GTE Stock Traders Looking At?
This month, Gran Tierra announced its year-end 2021 reserves revealing solid figures. Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented in a January press release:
“During 2021, Gran Tierra achieved strong 148% PDP and 123% 1P reserves replacement through our successful results from our development drilling, waterflooding programs, and field performance…The success the Company achieved in 2021 also reflects our ongoing conversion of reserves from the Probable to the Proved category. With 94 Proved plus Probable Undeveloped future drilling locations, Gran Tierra is well-positioned to continue to grow the Company’s production in 2022 and beyond.”
On the heels of a robust energy market, companies including Gran Tierra have found a soft spot among retail traders.
4. Ebang International Holding (NASDAQ:EBON)
With some fresh air breathed back into the cryptocurrency arena, related stocks are back in focus. Ebang International finds itself wrapped into the niche thanks to its involvement in developing blockchain technology. Ebang has also gained exposure as a bitcoin mining machine producer with its background in designing ASIC chipsets.
What Are EBON Stock Traders Looking At?
Like most crypto-related stocks, traders are looking at Bitcoin prices for direction. As you might notice, EBON stock has moved in a similar trend as the leading cryptocurrency. Now that BTC has reclaimed the $38,000 mark, eyes are on breaking back above the $40,000 level, a mental resistance level for some crypto traders.
5. Athersys Inc. (NASDAQ:ATHX)
Shares of Athersys Inc. spiked on Monday to highs of nearly $1. The company’s MultiStem cell therapy has been in focus as it prepares for a big presentation next month. The platform is designed as a regenerative medicine product currently in clinical development for promoting tissue repair.
What Are ATHX Stock Traders Looking At?
Considering that “next month” begins in a day, Athersys has a presentation in early February. That makes this week a potentially important one for the company. It presents details on its MultiStem clinical programs on Wednesday (Feb. 2). These presentations will include perspectives on an upcoming study data readout of its TREASURE study and design aspects of MASTERS-2 and TREASURE in stroke patients.
MultiStem data will also be presented on its application to acute respiratory distress syndrome. This will include data from two clinical trials and an outlook for MultiStem in treating ARDS.
Penny Stocks To Watch This Week
No matter if you’re trading penny stocks on Webull or other platforms, as they say, knowing is half the battle. With potential catalysts to look out for in the stock market today and this week, there is plenty of research to do.
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